End of an era for Warren Buffett and Berkshire Hathaway

Berkshire Hathaway founder Warren Buffett is stepping down as the company’s chairman to be replaced by his son Howard, the latest step in the succession process at one of the world’s most storied investment titans.

The billionaire will become chairman emeritus of the company with immediate effect, according to a statement on Friday.

The elder Buffett will remain a member of the board while his son, a director of the company since 1993, steps into the top role.

“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” said Greg Abel, who replaced Buffett earlier this year as the company’s CEO.

“The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.”

Buffett, 96, relinquishes the chairmanship after roughly six decades at the helm of the Omaha, Nebraska-based company, which was once an ageing textile mill that the legendary investor later turned into a more than $1 trillion conglomerate.

In a letter to shareholders, Buffett said he made the decision to step down after Abel exceeded his “sky-high” expectations as CEO.

“He has been making the decisions that matter for some time now, and I have not had to think twice about any of them,” Buffett wrote.

“So the timing is right to complete the transition.”

Abel has already begun deploying the company’s vast cash pile, including in share buybacks. Berkshire Hathaway’s stock price has largely stayed flat this year.